Home
/
RELIGION & LIBERTY ONLINE
/
Trump and Clinton are wrong: free trade helps the poor
Trump and Clinton are wrong: free trade helps the poor
Jan 25, 2026 6:06 PM

Imagine if Donald Trump made a campaign promise that he would lower the pay of every American, but would ensure that the poorest 10 percent have their pay lowered the most. Would you vote for him then? Or imagine if Hillary Clinton said she would increase inflation substantially to make the economy more “fair” for everyone. Would she win your support?

Neither candidate has made such a claim—at least not directly. TheAmerican people would immediate reject such harmful economic policies,and politiciansknow they’d be rejectedfor makingsuch inane promises.

In reality, though, both Clinton and Trump (as well as the candidates for the Green Party, Constitution Party, and the American Solidarity Part) have promised to implement policies that would have the same effect as increasing inflation or reducing pay, for all have proposed a means of lowering purchasing power.

Purchasing power is the number of goods or services that can be purchased with a unit of currency. There are several methods politicians can use to reduce purchasing power, but one of the most subtle mon is to increase barriers to foreign trade. As Nita Ghei says,

The benefits of freer international trade accrue to consumers in theform of increased choice and lower prices. More imports mean more bang for the buck, and that effectively functions like an increase in pay. Consumers either buy imported goods directly, like the finished shirt from Bangladesh, or they can buy an American-made good that includes ponents. When American producers have access to cheaper imports, they can increase production, create jobs and offer goods at a lower price.

There is significant evidence that e Americans benefit substantially from imports, and higher trade barriers will impose a proportionately greater cost on the poor.

The poorest Americans tend to assume (mostly because they’ve been lied to by people that know better) that international trade hurts them. In fact, it is just the opposite, not only for those living in the U.S., but for the poor in almost every part of the world. As The Economist recently noted,

A study by Pablo Fajgelbaum of the University of California, Los Angeles, and Amit Khandelwal, of Columbia University, suggests that in an average country, people on high es would lose 28% of their purchasing power if borders were closed to trade. But the poorest 10% of consumers would lose 63% of their spending power, because they buy relatively more imported goods. The authors find a bias of trade in favour of poorer people in all 40 countries in their study, which included 13 developing countries.

If the lives of the poor are disproportionately improved by freer trade, then why do they so often oppose it? The main reason is because it’s much easier for them to see the negative effects of trade. If the factory you work at making widgets closes and the jobs move overseas, it’s easy to assume that the total economic effect is negative. What is more difficult to see is how many poor people are now able to buy widgets because they are being produced at a lower cost.

That is why protectionism has an innate appeal—it’s easy to see the effects—while free trade seems, well, foreign. Yet what many people don’t realize is that protectionism not only hurts the majority of consumers, it rarely helps the minority of workers it was intended to protect. As Ghei notes,

[P]rotectionist measures, like duties on steel, do little to halt the decline of that industry, which employs 140,000 people now, yet those duties inflict higher costs on steel-consuming industries, which employ over 12 million people.

Free trade is one of the few policies that almost all economists, whether on the left or right, agree is beneficial to the majority of the population. But economically ignorant politicians (see: Clinton and Trump) know that by championing protectionist policies (all while claiming that they are really for “free trade”) they can win the votes of people that don’t know better. That is why those of us who do know better have a duty to the poor to set the record straight. We can’t stop politicians from lying to them. But we can do our best to see that they discover the truth.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Milton Friedman vs. Bernie Sanders
The presidential campaign of Bernie Sanders is about e to an end. Unfortunately, though, the Democratic Socialism espoused by Sanders will live on long after his presidential ambitions have faded. This type of socialism is nothing new, of course. For more than a century free market economists have been warning of the dangers of succumbing to the economic fallacies of democratic socialism. A prime example is the late, great Milton Friedman. Although he’s been gone for a decade, Friedman is...
When good intentions harm children
Imagine you are given three choices —A, B, or C. In the ranking, A is much preferred to B and B is exceedingly preferable to C. Which do you choose? Obviously, all else being equal, you’d choose A. Now let’s add the following restrictions to your choice: • You, your family, and your friends will all get A. But you must make the choice of A, B, or C, for other people who you will likely never meet. • If...
Church of England: Maybe Margaret Thatcher Wasn’t So Un-Christian After All
“Economics are the method,” wrote Margaret Thatcher in 1981, “the object is to change the heart and soul.” Guided by her Christian faith, the prime minister believed that the welfare state was not only harming her fellow citizens but damaging the moral fabric of the United Kingdom. As Florence Sutcliffe-Braithwaiteexplains, Thatcher’s fears about the welfare state were twofold: First, she and her advisers thought that generous collective provision for unemployment and sickness was sapping some working-class people’s drive to work....
Perverse Incentives Hurt Poor Defendants
Since the landmark Supreme Court decision Gideon v. Wainwright (1963) every state has developed a system of public defense. The decision guaranteed that those accused of felony offenses are entitled to a lawyer under the rights outlined in the 6th Amendment, which include, the right to a jury trial, a public trial, and pertaining to Gideon, “to have the assistance of counsel for his defense.” In the wake of the Gideon decision each state was required to develop a system...
New Barna Study on Americans’ Confused Morality is … Confused
The Barna Group recently released a fascinating new study on morality in America. The press release is titled, “The End of Absolutes: America’s New Moral Code.” It summarizes the study: New research from Barna revealsgrowing concern about the moral condition of the nation, even as many American adults admit they are uncertain about how to determine right from wrong. Sounds like a problem. And, indeed, the data does give reason to be concerned. But the framing of at least one...
Review and audio: Reconciling God and profit
Samuel Gregg’s latest book, For God and Profit: How Banking and Finance Can Serve the Common Good argues that making a profit and living a good, moral life are not mutually exclusive endeavors. People are taking notice. In a new review of the book at Zenit, Fr. John Flynn agrees with Gregg. “[M]oney and finance,” he begins, “play an essential role in the well-being of persons and nations and they are not of themselves immoral.” He continues: Another handicap to...
Exiles in the American Lion’s Den
We have routinelypointed to Jeremiah 29 as an introductory primer for life in exile, prodding us toward faithful cultural witness and away from the typical temptations of fortification, domination, and modation. As Christians continue to struggle with what it means to be in but not of the world, Jeremiah reminds us to “seek the welfare of the city,” bearing distinct witness even as we serve our captors. We are to “pray to the Lord for it,” Jeremiahwrites, “because if it...
Explainer: What You Should Know About ISIS and the Orlando Terrorist
On Sunday, an American-born terrorist named Omar Mir Seddique Mateen killed 49 and wounded 53 in Orlando. In a 911 call during the attack Mateen pledged his allegiance to the terrorist group ISIS. Although the group also claimed responsibility for the attack, U.S. officials said they haven’t seen a direct link between the gunman and the terrorist group. Here are five facts you should know about ISIS: 1. ISIS (aka ISIL, Islamic State, IS, Daesh) is the name of an...
What Christians Should Know About Crony Capitalism
Note: Later today at the Faith & Freedom conference I’ll be speaking on a panel titled, “A Cronyism Crisis: How Corporate Welfare Undermines Markets and Human Flourishing.” If you’re at the conference please stop by this session. The Term:Crony capitalism (sometimes referred to as cronyism or corporatism) What it means:Crony capitalism is a general term for the range of activities in which particular individuals or businesses in a market economy receive government-granted privileges over their customers petitors. Why it Matters:...
5 Facts About Acton University
This is the week for the annual Acton University, a unique educational experience focused on the intersection of liberty and morality. Here are five facts you should know about Acton U. 1. Acton University is a four day annual conference on liberty, faith and free-market economics held in Grand Rapids, Michigan. 2. Each even includes nine sessions in which attendees can create a customized learning path from 100+ courses taught by 55+ international, world class experts. 3. The conference is...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved